Question: The cash flows associated with a project are shown below. The interest rate varies from year to year as shown. EOY Cash Flow 0 $0

The cash flows associated with a project are shown below. The interest rate varies from year to year as shown.

EOY

Cash Flow

0 $0
1 $600
2 $-300
3 $700
4 $0
5 $1,000

Interest Period

Interest Rate

EOY 0 to EOY 1 10%/yr
EOY 1 to EOY 2 10%/yr
EOY 2 to EOY 3 8%/yr
EOY 3 to EOY 4 8%/yr
EOY 4 to EOY 5 12%/yr

Determine the amount required to create an equivalent uniform annual series of cash flows. $_________

Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 3%

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